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Suppose that a finance manager who has detailed knowledge about the composition of a bank's balance sheet knows that the duration of assets is 283

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Suppose that a finance manager who has detailed knowledge about the composition of a bank's balance sheet knows that the duration of assets is 283 years, the duration of liabilities is 849 years, the value of assets is 21.9 million, the value of liabilities is 5.6 million, hence the current net worth of the bank (value of shareholders equity is equal to 16.3 milion. If there is a 2% decrease in interest rates of interest rates drop from 5% to 36), the net worth of the bank will change to O 16.325 million Ob 16.575 million OC 16.850 million Od 16.025 million

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